THE GOOD, THE BAD & THE UGLY
PAST THE SELL BY DATE
SHAREHOLDERS IN RAINBOW CHICKEN will meet on 18 May to vote on the scheme of arrangement that proposes that industrial giant Remgro buy out the shares it doesn’t already own in the poultry business. But there’s a slight problem with that date. The meeting will be convened just days before Rainbow is – according to our information – scheduled to report its final year to end-March 2007 results.
It would surely be much fairer if Rainbow’s minority shareholders were given ample time to peruse the final results before making a decision concerning Remgro’s 1 600c/share buyout offer.
LAST WEEK’S CAUTIONARY from industrial and services conglomerate Bidvest could only be issued by a group that has a finger in almost every pie.
The company – headed by SA’s supreme dealmaker, Brian Joffe – advised shareholders it was currently involved in negotiations relating to a number of potential acquisitions. What’s more, Bidvest warns that the potential transactions could have a material impact on the group’s share price – which suggests a few significant deals rather than a string of smaller bolt-on acquisitions.
For those of us who dabble in speculation the field is wide open as to exactly which companies – probably both offshore and South African – Bidvest is eyeing. A major clue in the days ahead will be cautionary notices issued by other listed companies. Of course, negotiations could also entail Bidvest upping its stake in minority positions such as Comair, Cargo Carriers, Cullinan or EnviroServ.
More tantalising is the big deal. Dare we suggest companies such as the old Rebserve Group (now owned by the Mvelaphanda Group), Grindrod, Combined Motor Holdings or one of the major fishing companies.
WILL VENTER HITCH BEE PARTNER?
THE RECOVERY AT Venter Leisure & Commercial Trailers continues, with strong cash flows, improved earnings and a higher net asset value of 20c/share in the year to end-December 2006. Now if only the group could shed its remaining R15,5m debt, the profit pace would surely pick up. In that regard, the Hamann family – who control more than 80% of Ventel – must be considering a rights issue, which would not only bring in fresh capital but ensure increased liquidity and perhaps allow for a black empowerment shareholder to clamber aboard.